Arjo (ARJO) Q3 2025 earnings summary

Executive summary

• Organic net sales grew 3.8% year-over-year, with strong global demand, especially in India and several European countries, while the UK and diagnostics segment declined.

• Service business maintained strong momentum, capital sales improved, and rental business was slower; North America and rest of world, especially India, delivered double-digit growth.

• Adjusted operating profit excluding currency and tariff effects rose over 20%, supporting improved profitability.

• Operational cash flow improved to SEK 446 million, with cash conversion at 105%, both up year-over-year.

• Appointment of Andréas Elgaard as new President & CEO, effective January 2026.

Financial highlights

• Gross margin was 41.1%, down from 42.0% last year, mainly due to currency, tariffs, and product/geographic mix.

• Adjusted EBITDA was SEK 436 million (up from SEK 434 million), with a margin of 16.5% (15.9%).

• Adjusted EBITA margin increased to 8.6% (from 8.3%); adjusted EBIT margin rose to 6.2% (from 6.0%).

• Net profit was SEK 81 million (SEK 73 million), EPS SEK 0.30 (SEK 0.27).

• Net debt to adjusted EBITDA was 2.2x, equity ratio 49.5% (up from 48.7%).

Outlook and guidance

• Organic net sales growth for 2025 expected within the 3%-5% target range.

• Strong order book and positive momentum anticipated to drive a strong Q4 finish.

• Cash flow for the full year expected just below the 80% target, in line with last year.